Colorado Sales License Practice Test

According to Colorado law, which of the following does NOT need to be licensed as a motor vehicle dealer?

1. Individuals selling their personal vehicle

2. Wholesalers only

3. Auto rental companies

4. All of the above

The correct answer is: All of the above

In Colorado, individuals selling their personal vehicle do not need to be licensed as a motor vehicle dealer. This exemption applies because private sales of personal vehicles do not qualify as a business activity; they are considered private transactions between individuals. Therefore, someone selling their own vehicle occasionally for personal reasons is not required to obtain a dealer's license. Wholesalers, who conduct business primarily in the sale of vehicles to other licensed dealers rather than the public, also typically do not need a retail motor vehicle dealer's license, although they must be appropriately licensed under Colorado law pertaining to wholesalers. Auto rental companies, while they operate in the vehicle industry, are not classified similarly to traditional motor vehicle dealers because they provide rental services rather than selling vehicles outright. Since all these categories do not require a motor vehicle dealer license under Colorado law, the correct answer encompasses all scenarios listed. Therefore, option D appropriately reflects that none of the entities mentioned—individual sellers, wholesalers, and auto rental companies—need a dealer's license.